EMERGING MARKETS-Latam stocks, currencies rally on U.S. rate outlook

jueves 22 de septiembre de 2016 10:53 GYT

By Bruno Federowski
    SAO PAULO, Sept 22 (Reuters) - Latin American stocks and
currencies rallied for a second day on Thursday as traders
doubled down on bets that the U.S. Federal Reserve will raise
interest rates slowly.
    Fed policymakers reduced their forecasts of annual rate
increases to two from three for 2017 to 2018 in their policy
statement on Wednesday. 
    The move caught some traders by surprise after conflicting
remarks by Fed officials had revived bets on an aggressive
hiking cycle.
    "This could trigger strong inflows into emerging markets,"
said Tarcísio Rodrigues, head of currency trading with Brazil's
Banco Paulista.
    The Mexican peso  strengthened for a second
straight day after weakening to historic lows this week, also
supported by a rise in crude oil prices.
    But many analysts believe the peso is poised to lose
further, weighed down by uncertainty over the outcome of the
U.S. presidential election in November.
    Shares of Brazilian state-controlled oil company Petróleo
Brasileiro SA  advanced, supporting the
country's benchmark Bovespa stock index.
    The chief executive officer of Petrobras, as the company is
known, told Reuters on Wednesday a U.S. class-action lawsuit on
corruption will not overshadow the firm's $74 billion, five-year
plan to slash its crippling debt. 
    Key Latin American stock indexes and currencies at 1445 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets                921.64     1.77    14.04
 MSCI LatAm                          2432.59     2.75    29.39
 Brazil Bovespa                     59289.23     1.53    36.77
 Mexico IPC                         47516.65     1.25    10.56
 Chile IPSA                          4101.83     0.67    11.46
 Chile IGPA                         20392.78     0.57    12.35
 Argentina MerVal                   16548.47     1.57    41.74
 Colombia IGBC                       9971.31     0.93    16.66
 Venezuela IBC                      12180.58     1.13   -16.50
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.1950     0.46    23.54
 Mexico peso                         19.6300     0.56   -12.23
 Chile peso                            656.2     1.31     8.15
 Colombia peso                          2850     1.43    11.20
 Peru sol                              3.352     0.45     1.85
 Argentina peso (interbank)          15.1800    -0.23   -14.48
 Argentina peso (parallel)             15.64     0.26    -8.76

 (Reporting by Bruno Federowski; Editing by Dan Grebler)